1. Field of the Invention
This invention relates generally to financial market data processing systems and specifically to a fault-tolerant computer-implemented system for assembling world-wide financial market data for regional distribution.
2. Discussion of the Related Art
The continuous reporting from the major exchanges (e.g., New York Stock Exchange, Chicago Board of Options Exchange, et al.) of financial market data such as stock trades, option premiums, securities transaction volume and the like, is denominated in the art as the "ticker data feed", which normally includes transaction price and volume data associated with a trade keyed to a "ticker symbol" representing the security traded. Ticker feed data are created when a trade is actually made on the floor of the exchange. As such, the ticker data feed includes only the raw trading information reported by floor brokers and does not usually include derivative financial data such as accumulated volume, price extremes over selected time intervals, statistical trends, and consolidated data for securities traded on several independent exchanges. Moreover, the ticker data feed is unresponsive to requests for current financial market data for specific securities, which are available only from some database in which the ticker feed data are stored and updated.
Recent advances in telecommunications technology have encouraged the proliferation of world-wide trading of securities through regional exchanges and through "virtual" exchanges that exist only in the amalgamation of computer systems denominated "cyberspace". This proliferation has given rise to new problems for the securities trader, such as fragmented markets for single securities, continuous 24-hour daily trading activity, and rapid market response to world-wide events. These new problems add to the long-felt problems in the art arising from delayed availability of derivative financial market data, individual portfolio valuation data and specific trading activity indicators or alarms. Although the effects of improved telecommunication technology operate to improve reporting of financial market data, they also exacerbate the effects of existing obstacles to the rapid collection, integration and distribution of world-wide financial market data.
Although the present art is replete with systems and procedures for the collection, assembly, processing, storage and distribution of financial market data, the existing techniques neither anticipate nor solve the newer problems arising from rapid escalation of world-wide security trading on many different physical and virtual exchanges. For instance, tens of thousands of different financial instruments are traded on several dozen physical and virtual exchanges in the United States alone. In addition, several thousand mutual fund shares are traded in the United States alone. Thousands of additional financial instruments are traded on many dozens of other exchanges in Europe and the Far East. Other exchanges include Canadian, Mexican, South American, virtual government bond markets, etc. There is a market wherever a trade is made that generates financial market data of interest to the securities trader. Because financial market data accuracy and timeliness are directly quantifiable in monetary terms, there is a clearly-felt need in the art for a financial market data reporting system that collects world-wide security trading data wherever available and delivers such data in consolidated derivative form to regional users without failures such as error or delay.
Because of the directly-quantifiable monetary value of financial market data quality, the art is replete with systems and procedures proposed by practitioners to overcome the accuracy and timeliness problems associated with reporting financial market data. For instance, in U.S. Pat. No. 4,677,552, H. C. Sibley, Jr., discloses an automated international commodity trade exchange having several local computerized trade exchanges located in at least two different countries and interconnected by satellite communication. Sibley's invention provides consolidated market data to the trader by means of user terminals, thereby permitting trades based on knowledge of the consolidated market instead of the local market. However, Sibley does not consider the collection, processing and distribution of data from scores of world-wide exchanges trading in tens of thousands of different securities involving hundreds of financial instrument types other than commodity contracts.
Other practitioners have disclosed improvements in local trading systems. For instance, in U.S. Pat. No. 5,101,353, William A. Lupien et al. disclose an automated system for improving market liquidity through computer-implemented trading apparatus. Their system uses data processing equipment to place trading orders in external securities markets and through automated "brokers" (in cyberspace) that execute trades directly between system users. Lupien et al. consider solutions to the external market liquidity problems arising from large institutional trades and do not consider the collection and distribution of world-wide financial market data. Similarly, in U.S. Pat. No. 4,674,044, Leslie P. Kalmus et al. disclose an automated securities trading system that operates as a "virtual" trading floor for selected securities. Their system reports executed trade details to the customer and to national stock price reporting systems and responds to changes in security trading prices by updating all relevant internal parameters. Kalmus et al. provide a solution to the automated trade-quality problem known for virtual exchanges but neither consider nor suggest methods for rapid and accurate accumulation of world-wide exchange transaction data for distribution to regional users. Also, in U.S. Pat. No. 5,038,284, Robert M. Kramer discloses a method and apparatus for conducting trading transactions in a network of portable trading stations. Kramer teaches a computer-assisted "pit" trading system that uses portable computer terminals to automatically report and reconcile all trades without the usual risk of confusion or error associated with the loud and boisterous "pit" environment of commodity exchange floors.
Some practitioners propose solutions to the "derivative market data" distribution problem, otherwise denominated the "portfolio tracking" problem in financial market data systems. For instance, in U.S. Pat. No. 4,989,141, Richard J. Lyons et al. disclose a computer system for financial analysis and reporting of individualized market portfolio performance. Lyons et al. ignore the problem of accurate trading reports. Similarly, in U.S. Pat. No. 4,566,066, Frederic C. Towers discloses a securities valuation system that employs a general purpose digital computer to produce securities portfolio valuation schedules for many simultaneous users. Like Lyons et al., Towers merely assumes accurate daily updates to the basic financial market data without considering the above-described quality problems.
More pertinently to the global financial data quality problem, numerous practitioners suggest improved local market quotation systems. For instance, in U.S. Pat. No. 4,473,824, Richard N. Claytor discloses a price quotation system for distributing financial market data. Claytor's system includes a transceiver for receiving financial market data and for broadcasting selected data to users possessing handheld portable receiving and display devices. Claytor essentially discloses a "ticker-tape" transmitter with portable receiving terminals suitable for tracking trading activity related to a few user-selected securities and neither considers nor suggests techniques suitable for compiling and distributing world-wide financial market data for tens of thousands of different securities. Earlier, in U.S. Pat. No. 3,611,294, Jerry D. O'Neill et al. disclose a system of disseminating financial market data from a central broadcasting station to a plurality of portable radio receivers. Again, O'Neill et al. merely disclose a method for transmitting raw exchange "ticker data feeds" to individual users who may then accumulate data for a few user-selected securities. Also, in U.S. Pat. Nos. 4,677,434 and 5,045,848, Anthony C. Fascenda discloses a similar system for encoding and broadcasting financial market data by commercial radio transmitter to a plurality of specially-equipped portable radio receivers. Fascenda employs commercial FM broadcast spectra to transmit ticker data interleaved with a repeated stream of derivative financial market data. Fascenda considers data encoding and compression together with encryption methods to control access and improve channel efficiency but neither considers nor suggests methods for the accumulation, processing and distribution of high-quality world-wide financial market data.
Early practitioners in the art considered the limited problem of ticker data feed distribution to regional centers by land-line. For instance, in U.S. Pat. No. 3,082,402, J. R. Scantlin discloses a securities quotation apparatus that uses telephone lines to distribute exchange ticker data to regional customers who may then accumulate, process and distribute data to their clients. In U.S. Pat. Nos. 3,513,442 and 3,689,872, Frank W. Sieracki discloses a financial market data retrieval and quoteboard multiplex system that permits regional users to request and receive specific financial market data on demand from a central ticker data stream using telephone lines. In U.S. Pat. No. 4,942,616, Thomas Linstroth et al. disclose an interactive synthesized-speech quotation system for brokers that is suitable for automated response to clients who call in telephone price quote requests for individual securities. Their system offers human-speech response to such requests without human intervention.
Nothing in the present art is readily suitable for accumulating, processing and distributing financial market data of the quality and the scale required to satisfy demands arising from the recent improvements in world-wide trading technology. Such a system must be completely reliable and therefore tolerant of any possible system element failures. Data distribution must occur through the system without significant delay. Data errors must be detected and corrected, either automatically or with cued manual intervention. Finally, such a central ticker plant system must provide for adding ticker data streams from new physical and virtual exchanges and must provide for customized distribution that is responsive to user command. Nothing in the related art is suitable for resolving all of these problems.
These unresolved problems and deficiencies are clearly felt in the art and are solved by this invention in the manner described below.